Airline Industry

July 13, 1986|By Deanne Brandon

FLIGHT TEAMS. People Express Inc. rejected a $235.8 million purchase offer from Texas Air Corp. but agreed to sell its Frontier Airlines subsidiary to United Airlines for $146 million. The no-frills carrier bought Frontier eight months ago for $305 million. . . . The Transportation Department tentatively approved the $600 million merger of Eastern Air Lines Inc. and Texas Air Corp. but said the carriers must prove that the deal would not squelch competition. The government is concerned about the potential for a monopoly in shuttle flights serving New York, Boston and Washington, D.C.